EU Intensifies Cartel Probe Into Swiss Chemicals Firm Sika

According to Swiss public broadcaster SWI swissinfo.ch, citing reporting from Keystone-SDA, the Commission has sent Statements of Objections to Sika and other companies over suspected price-fixing involving chemical additives used in cement, concrete and mortar. The allegations relate to conduct between 2021 and 2022, when manufacturers faced surging raw material and energy costs following the COVID-19 pandemic and the economic fallout from Russia’s invasion of Ukraine.

The European Commission’s preliminary findings suggest that several companies may have coordinated future price increases and exchanged information through national industry associations, which allegedly prepared common communications to justify higher prices to customers. Such practices, if proven, could constitute violations of EU competition rules prohibiting cartels and concerted market behavior.

The Commission’s objections encompass multiple national markets. In Germany, the companies identified by regulators include Sika, Cemex, Mapei, Master Builders Solutions and MC-Bauchemie, alongside industry association Deutsche Bauchemie. Similar allegations have also been made against companies and trade associations operating in France and Spain. Reuters reported that the French case additionally involves companies such as Chryso and TAM and the trade association SYNAD, while the Spanish proceedings include ANFAH and several major manufacturers.

Related: UK Chemical Firm Ineos To Buy Sika Assets

Under EU antitrust procedures, a Statement of Objections represents a formal step in enforcement proceedings but does not constitute a final finding of wrongdoing. Companies receiving the notice are entitled to review the Commission’s evidence, submit written responses and request oral hearings before regulators reach a final decision. If the allegations are ultimately upheld, the companies and associations involved could face fines of up to 10% of their global annual turnover under EU competition law.

The investigation traces back to unannounced inspections conducted by EU authorities in October 2023. At the time, Sika confirmed that European Commission officials had searched several of its facilities in EU member states and in Turkey. Chief Executive Thomas Hasler said the company was fully cooperating with investigators and reiterated Sika’s stated zero-tolerance approach toward breaches of competition regulations, according to SWI swissinfo.ch.

The case highlights increasing regulatory scrutiny of industrial sectors where concentrated markets and coordinated pricing behavior can have broader economic effects. Construction chemicals are critical inputs for infrastructure and building projects, meaning any anti-competitive conduct could potentially affect construction costs across the European Union. EU competition authorities have in recent years stepped up enforcement efforts against alleged cartels in sectors ranging from automotive components to chemicals and building materials.